Opening for subscription today, E to E Transportation Infrastructure Ltd is targeting the NSE SME platform with a fresh issue of ₹84.22 crore. The company specializes in railway electrification and signaling systems—areas that are receiving a lions share of the Indian Railway’s budget. The price band for the issue is fixed at ₹164–₹174.\n\nThe business model is project-driven, with a focus on high-margin EPC (Engineering, Procurement, and Construction) contracts. Their order book currently stands at 2.37x their FY25 revenue, providing excellent visibility for the next two years. The company has a strong track record of completing projects ahead of schedule, which has earned them bonus incentives in the past.\n\nMarket analysts are noting the healthy return on equity (RoE) of 22%, which is quite high for the infrastructure sector. The funds raised will be used to purchase advanced testing equipment and to meet the bank guarantee requirements for upcoming larger tenders. This move is expected to help the company transition from a sub-contractor to a primary contractor in the near future.\n\nGMP for E to E Transportation is currently hovering around ₹15, indicating a modest but positive start. Unlike the "meme" SME stocks, this company appears to have solid fundamentals and a professional management team. The subscription numbers over the next three days will be a key indicator of retail appetite for infrastructure plays.\n\nIn a week crowded with IPOs, E to E stands out as a "quality" infrastructure play. While it may not see the 900x subscription of a spice company, its long-term growth potential in the electrification of the Indian Rail network makes it a serious candidate for a diversified portfolio.
